Finding Text
Finding 2022-005 ? Allowable Costs (Material Weakness and Non-compliance) Information on the Federal Program: Legal Services Corporation Basic Field Grant Criteria: 45 CFR 1630 requires that costs are incurred, reasonable and necessary, allocable to the grant, adequately documented, and consistent with accounting policies and procedures. Condition/Context: During our LSC testing, we selected 50 disbursements for testing. Of those 50, 25 were for payroll and 25 were non-payroll disbursements. Of 25 payroll, 2 employees did not have an approved pay rate. Of the 25 non-payroll disbursements, 1 did not have proper supporting documentation such as an invoice, 13 were not properly approved for payment and 14 did not have adequate support to determine the amount allocated to the grant. Cause: Employee time and expenses allocated to the LSC grant were not properly supported and approved. Effect: FRLS is not in compliance with allowable cost documentation requirements. Questioned Costs: None reported. Recommendation: We recommend FRLS strengthen its policies and procedures surrounding the process of calculating assistance payments to ensure accurate amounts are disbursed and FRLS is in compliance with all required documentation and disclosure requirements. Views of Responsible Officials: See Management?s View and Corrective Action Plan included at the end of the report.